Collect regular dividends and wait for opportunities.We want to be in a position which would allow us to benefit from market weakness as well as strength. The way to do this is to stay invested in the market and also have a war chest ready.

Opportunities to accumulate will always show themselves but without a war chest, it would be difficult to take advantage of them.Sometimes, doing nothing is also doing something.So, as I wait and do nothing, I might have mostly nothing to blog about. ;pRelated post:To be richer, be comfortable with being invested.

Now, which stocks to invest in? It would depend on whether you want income or growth or both. ;)

In the current environment, investing for income has become the more attractive option for many investors.

I have a couple of ideas on my mind now:

There could be more positives for construction companies such as Hock Lian Seng and Yongnam with the new Thomson MRT line announced. They have strong numbers, pay good dividends and their share prices present good value now.

A reader wrote to me about Perennial China Retail Trust. I blogged about this trust middle of last year before its IPO and said it was not a good investment then. It was offered at 70c a unit at IPO. Now, it is more attractive at 47.5c a unit.

Singapore’s real estate investment trusts, the best performing in the world this year, are luring investors after a shopping spree for properties across Asia gives them a broader stream of rental income.

An elevated view shows the buildings in Singapore's skyline. Photographer: Munshi Ahmed/Bloomberg .Singapore’s $38 billion REIT market has returned an average 37 percent in 2012, twice the gains in the U.S., U.K. and Japan, according to data compiled by Bloomberg. Australia, the largest REIT market in the Asia-Pacific region with $86 billion, advanced 24 percent.

Growth among Singapore REITs was led by asset acquisitions and rental appreciation, with total rental revenue increasing 5.8 percent annually between 2008 and 2011, according to property broker CBRE Group Inc. In the first half, Singapore REITs were the second-most active purchasers after Japan in Asia, buying assets in Australia, China, Japan, Malaysia and South Korea, and accounting for 33 percent of acquisitions by the region’s REITs since 2009, CBRE said.

“Singapore remains amongst the last few AAA rated economies,” Priyaranjan Kumar, Singapore-based regional director of the capital markets group at broker Cushman & Wakefield, said in an interview. “Its real estate market has received unprecedented attention from most investors as it’s seen to offer a good proxy for the increasingly recognized strength of the Asian consumer.”

The gap between their yield and interest rates is double that in Australia, according to data compiled by Bloomberg. Property trusts in the island-state offer an average 413 basis- point income return premium relative to 10-year government bonds, while in Australia they average 192 basis points, data compiled by Bloomberg showed. A basis point is 0.01 percentage point.

Another reader wrote to me regarding MIIF. The fund's balance sheet has improved a lot over the years and its earnings are robust.

However, the new rules by the PRC government regarding HNE could put some downward pressure on earnings. So, if we are comfortable with a more conservative future DPU of 4.8c to 5.0c (instead of the current 5.5c), at 53c a unit, we are looking at a distribution yield of 9.06% to 9.43%.

We want to remember that the concession given for HNE will end in another 11 years. HNE accounts for some 30+% of MIIF's earnings. So, if the fund keeps the status quo, we could see DPU impacted by a similar proportion when the concession ends finally.

I am vested in MIIF at 30+c to 40+c. At 53c, I am not really interested but for anyone who is considering starting a long position, 53c seems like a fair price to pay if we are happy with a 9+% yield and if we can live with what is happening with HNE.

Reader:I am a retail investor myself (with over 10 years of experience/mistakes) and I wanted to pick your mind about the concept of permanent portfolio and in particular - what was your strategy/portfolio allocation heading into 2008-2009 crisis?(After all, Andy Grove like to say only the paranoid survive. It's good to know where the exit is before the movie gets bad)

Wisdom to tap on.

Disclaimer

The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.